Nishad Singh, the former head of engineering at FTX, has agreed to pay $3.7 million to settle a case with the Commodity Futures Trading Commission over his alleged role in the exchange’s collapse and the misuse of customer funds.
Under a supplemental consent order, Singh will disgorge $3.7 million and face a five-year ban from trading, along with an eight-year registration ban that prevents him from obtaining a license to operate in regulated markets, the CFTC said Wednesday. The agency noted that the combined orders fully resolve its enforcement action against him.
FTX’s collapse in November 2022 sent shockwaves across the crypto industry, wiping out billions in liquidity, undermining user confidence and leading authorities to accuse senior leadership of fraud.
David Miller said no additional restitution or civil penalties are being imposed at this stage, citing Singh’s cooperation with investigators.
“The defendant engaged in, and aided, significant violations of the Act and CFTC regulations as the former FTX head of engineering, and the consent orders reflect the severity of these violations,” Miller said.
“But this resolution also reflects the Commission’s commitment to rewarding and incentivizing meaningful cooperation in its investigations,” he added.
Singh faced multiple charges after FTX collapse
Attorneys for Nishad Singh said he welcomed the resolution of the case and were “pleased that the CFTC recognized our client’s limited role and his extensive cooperation,” according to Bloomberg.
The Commodity Futures Trading Commission had accused Singh of misappropriating millions in assets, charging him in February 2023 with fraud by misappropriation and aiding and abetting fraud tied to former FTX CEO Sam Bankman-Fried.
Singh entered into a consent order in April 2023, accepting liability and agreeing to cooperate with investigators. The regulator had initially pursued a broader set of penalties, including restitution, civil fines and permanent trading and registration bans.
In a separate case filed by the Securities and Exchange Commission in February 2023, Singh was similarly accused of misusing customer funds and violating securities laws. That case was settled in December, resulting in an eight-year industry ban.
Following FTX’s collapse, US prosecutors also indicted Singh and four others on charges including fraud and campaign finance violations. While he initially faced the possibility of decades in prison, his cooperation — including testifying against Bankman-Fried — led to a sentence of time served and three years of supervised release.
